Duke  University  Libraries 


D03209564T 


TREASURY  DEPARTMENT,  C.  S.  A.  ) 
Richmond,  March  14th,  1864,      i 


The  President  and  Directors  of 
the  Bank  of 


Gentlemen  : 

Under  the  recent  act  of  Congress  to  reduce  the 
currency,  it  is  provided  that  if  any  Bank  of  Deposit  shall  givo 
its  Depositors  the  4  per  cent.  Bonds  authorized  by  the  Act 
in  exchange  for  their  deposits,  and  specify  the  same  on  the 
Bonds  by  some  distinctive  mark  or  token  to  be  agreed  upon 
with  the  Secretary  of  the  Treasury,  then  the  said  Depositors 
shall  be  entitled  to  receive  the  amount  of  said  Bonds  in 
Treasury  Notes,  bearing  no  interest  and  outstanding  at  the 
passage  of  the  act,  provided  the  paid  Bonds  are  presented 
before  the  privilege  of  funding  the  said  notes  at  par  shall 
cease. 

By  the  first  section  of  the  act  the  privilege  of  funding  will 
cease  on  the  1st  of  April,  1864,  east  of  the  Mississippi,  and 
on  the  1st  of  July,  west  of  the  Mississippi.  It  is  obviously 
impracticable  to  furnish  the  Bonds  before  the  1st  of  April, 
and  therefore,  to  give  any  effect  to  the  provision  of  the  Act, 
the  certificates  issued  by  the  Depositaries  must  be  substitu- 
ted for  the  Bonds.  The  Bonds  being  required  by  the  Act 
to  be  registered,  the  certificates  must  be  conformed  thereto 
and  must  be  assigned  in  the  form  usually  required  for  Re- 
gistered Bonds.  By  writing  the  words  "for  Deposits"  over 
the  signature  of  the  officer  o\'  the  Bank,  who  shall  assign  the 
certificate,  a  sufficient  token  can  be  established,  and  1  pro- 
pose that  course  to  the  Banks. 

There  is  anotlicr  matter  in  which  I  respectfully  ask  your 
concurrence. 


It  certainly  will  be  a  great  object  gained  to  adjust  prices  and 
business  operations  as  speedily  as  possibly  to  tbe  new  cur- 
rency, wbich  will  be  issued  after  tbe  1st  of  April.  Tho 
Banks  bave  tbe  power  to  ]>ron)ote  this  object  most  e fleet «- 
ally  by  accepting  deposits  in  tbe  old  currency  payable  in 
the  new.  If  for  every  three  dollars  so  deposited,  the  Banks 
will  give  credit  on  their  books  tor  two  dollars  payable  in 
new  issues,  tbe  old  currency  would  berated  accordingly  in 
all  transactions,  and  prices  everywhere  would  have  relation 
to  the  new  currency  It  woiibl  also  follow  that  so  much  of 
the  business  of  the  country  as  can  be  transacted  by  checks 
on  Banks  would  be  carried  on  as  heretofore  without  actual 
delivery  of  money,  and  so  much  time  would  be  gained  for  the 
preparation  of  tbe  new  issues.  It  is  true  that  the  Banks 
will  thus  encounter  the  risk  of  not  being  supplied  with  new 
notes,  inasmuch  as  it  is  obvious  that  tbe  means  of  sup{dy 
are  not  adequate  to  the  pressure  which  will  suddenly  be 
thrown  upon  ibe  Treasury.  Tiiis  pressure  will  be  relieved 
by  the  immediate  issue  of  certiKcates  and  five  hundred  dol- 
lar notes,  and  by  tbe  further  issue  of  all  denominations  as 
speedily  as  [)ossible. 

I  respectfully  submit  the  matter  for  your  consideration, 
and  request  that  your  Bank  will  at  its  earliest  convenience 
issue  an  advertisement  to  the  elFect,  that  it  will  accept  de- 
posits of  all  currency,  except  one  hundred  dollar  notes, 
payable  in  tbe  new  issues  at  the  rate  of  two  dollars  of  new 
for  three  of  old. 

Very  respectfully, 

Your  o'bt  servant, 


Secretary  of  Treasury, 


p6Rmalif!64 

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